During Times of Uncertainty, Create Business Value with an Optimized Workforce

In recent years, medtech employers have struggled heartily with the growing skills gap. The scarcity of digital and specialized skills placed enormous pressure on talent leaders to attract, hire, and retain great people. While HR has risen to meet this challenge, how can they continue to make a difference on workforce performance even as demand for talent softens?

The labor market’s recovery was intense and unprecedented following the pandemic’s outbreak. For instance, after losing more than 20 million jobs in the second quarter of 2020, the market had 5.4 million more jobs by the end of 2021 than it did in the previous year.¹ For the life sciences industry, demand for talent is expected to reflect the average growth for all occupations through 2031.² This means engineers, clinical researchers, and regulatory professionals will continue to be in high demand for the rest of this decade. And with demographics showing a rapidly graying population in many industrialized countries,³ the medical device industry must be prepared for sustained market growth.

A Renewed Focus on Value Creation

While filling seats was perhaps the single greatest challenge facing HR last year during the massive hiring frenzy, a broad slowdown is now shifting their attention. Talent leaders are now turning their focus to initiatives that have been put on the backburner, creating long-term value for the business. Specifically, companies are focusing on optimizing their workforce, facilitating learning and development, and redeploying talent from declining businesses to growing ones. These initiatives should be welcomed by every C-suite executive because they will have long-term benefits for the business.

Randstad Enterprise’s 2023 Talent Trends survey of more than 900 C-suite and talent leaders in 18 markets—of which 12% were in the life sciences sector—shows  there is a different outlook this year than in the past.⁴ For instance, the biggest change is how talent acquisition can empower the business. An overwhelming majority (88%) of life sciences and pharma leaders say their focus is more on creating overall value than on reducing costs. This is up from 51% the previous year, and it’s a surprising development because so many organizations today are fixated on cutting costs as they face economic uncertainty and inflation.
Nearly as many (84%) life sciences leaders say the goal of their talent strategy is to have a measurable impact on business performance, an increase from 67% in the previous year. In other words, talent leaders are looking to better connect the dots between workforce effectiveness and business output in a very tangible way. This means developing more KPIs to show how getting the right people into the right roles will ultimately impact revenues, productivity, and innovation.

This has been a strategic initiative for medtech HR leaders in recent years, but the persistent challenges of the growing skills gap have dominated their attention. Even in today’s uncertain economic climate, more than a quarter (28%) of life sciences and pharma leaders say talent scarcity is having a negative impact on their business or is one of their company’s greatest pain points.

Enhance Performance, Satisfaction, and Productivity

With many organizations freezing hiring, talent leaders have set their sights on three priorities to enhance workforce performance, people satisfaction, retention, and productivity.

1. Creating a competitive advantage.
As our data indicates, HR not only wants to make a measurable impact on the business but also wants to give it a step up over competitors. Despite uncertain market conditions, many believe the current environment also presents opportunities to create a business advantage by creating a more agile and market-ready workforce. Offering democratized coaching opportunities across the workforce, building an internal mobility plan, and continuing to digitalize HR processes are examples of how HR can make an impact in today’s environments. Implementing a talent intelligence strategy that includes both internal data and external market intelligence, and adopting technologies that help empower people at work are others.

2. Guiding talent to their true potential.
Skilling is another way device makers are preparing their people for an uncertain future. Ensuring they have the skills needed to drive innovative therapies and diagnostics not only benefits talent, who feel valued and relevant, but the company as well. A focus on training and career engagement will not only ensure employers have the skills they need to remain competitive—especially when it comes to digital skills and R&D—but can also help reduce recruitment costs, improve retention, and build strong relationships with their talent.

Investments in skills are not unexpected as the medtech industry continues to undergo digital transformation—driven by similar trends in healthcare—and push forward new products. As was previously reported in MPO, 2022 was expected to record the highest number of FDA 510(k) clearances since 2012.⁵ And while a slowdown is expected in 2023, the need for skilled workers over the long term will not diminish, especially as demand for new therapeutics remains robust.

3. Delivering a meaningful, mission-driven work experience.
More than ever, device makers must focus on worker retention and engagement. During the past several years, a new social contract between talent and employers has emerged, one in which expectations on both sides have shifted. The Great Resignation led many to change employers and/or leave the workforce all together. The labor market remains buoyant, and companies simply can’t afford to lose their best people to competitors within and outside of the medtech industry.

To create a better workplace experience, many device makers are building more inclusive workplaces and diverse workforces to help employees feel a sense of belonging. At the same time, wellness has become a centerpiece for ensuring people bring their best selves to work each day. And while purpose—doing work that improves and saves lives—has always been a core value proposition in the medical device business, many companies are also opting to emphasize their environmental, social, and governance efforts to attract and retain talent. By fostering a culture of care and inclusion, companies help their workforce feel driven and purposeful.

Conclusion

As the medtech industry faces continued uncertainty in the months ahead, forward-thinking employers are resisting the call to hunker down and rationalize their human capital. Rather, they are looking ahead and preparing their workforce to be ready for any contingency and eventual economic recovery that will come their way. 

References

1. bit.ly/mpo230321
2. bit.ly/mpo230322
3. bit.ly/mpo230323
4. bit.ly/mpo230324
5. bit.ly/mpo230325

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Tania de Decker is the managing director of global strategic accounts for Randstad Enterprise Group. She works with Fortune 500 companies to develop and implement processes that improve and drive recruitment and retention solutions. de Decker has more than 28 years of recruitment experience and has worked over 18 years with life sciences companies. The emphasis has always been improving the quality of her clients’ talent acquisition.